A Republican bill with 1 Democratic cosponsor · See the cosponsor
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Skill Savings Account Act of 2026 aims to amend the Internal Revenue Code of 1986 to establish skill savings accounts. These accounts are trusts intended exclusively for paying qualified education expenses for an account beneficiary. Contributions can be made by an employee or an employer, and these amounts are excluded from the employee's gross income. The bill sets specific limits on how much can be contributed by employers and employees each year. It also outlines specific requirements for the trustees and the types of assets allowed within the trust. These changes are set to take effect for taxable years beginning after December 31, 2025.
Yes· 3 of 9
- Scored +5
Would middle-income households be better off under this?
The bill offers a specific tax exclusion for employee and employer contributions to education accounts.
- Scored +5
Would students be better off under this?
The bill facilitates the funding of qualified education expenses through tax-advantaged accounts.
- Scored +5
Does this cut taxes for middle-income families?
The bill allows for tax-free contributions and distributions for qualified education expenses.
The opposite
- Scored -2
Would people over 65 be better off under this?
The bill imposes a 20 percent penalty on non-educational distributions for those under age 65.
Who it would affect, and how
Potential Positive Impacts for People
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Tax-Free Contributions and Distributions: The bill allows for contributions made by employees or employers to be excluded from gross income, and distributions used for qualified education expenses are also excluded from grosss income. This provides a tax advantage for saving for education. (Section 2(a))
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Support for Eligible Employees: The bill defines an eligible employee as someone employed in the United States who is not a dependent of another taxpayer, providing a specific pathway for workers to save for education. (Section 2(b))
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Financial Security of Account Interests: The law states that the interest of an individual in the balance of their account is nonforfeitable, ensuring that the saved funds belong to the individual. (Section 2(d)(5))
Potential Negative Impacts for People
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Contribution Limits: There are strict limits on how much can be contributed without being taxed; employer contributions are capped at $5,250 (after considering other exclusions), and aggregate employee contributions cannot exceed $10,000. (Section 2(c))
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Penalties for Non-Educational Use: If money is taken out of the account for anything other than qualified education expenses, it must be included in the beneficiary's gross income, and individuals under age 65 will face an additional 20 percent tax on that amount. (Section 2(f)(1)-(2))
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Strict Contribution Rules: To maintain the account, contributions must be made in cash, and the trust assets cannot be invested in life insurance contracts. (Section 2(d)(1)-(4))
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would middle-income households be better off under this? — The bill offers a specific tax exclusion for employee and employer contributions to education accounts. Would students be better off under this? — The bill facilitates the funding of qualified education expenses through tax-advantaged accounts. Would people in their twenties and thirties be better off under this? — The bill provides a tool for building savings intended for educational advancement. Would business owners be better off under this? — Employers can contribute up to $5,250 tax-free toward an employee's skill savings account. Would households on low incomes be better off under this? — The ability to save for education tax-free provides a benefit to eligible employees. Would people over 65 be better off under this? — The bill imposes a 20 percent penalty on non-educational distributions for those under age 65.
- Economy And Finance
- Does this cut taxes for middle-income families? — The bill allows for tax-free contributions and distributions for qualified education expenses. Is this likely to grow the economy? — By incentivizing skill-based education savings, the bill may improve workforce productivity over time.
- Education And Technology
- Does this make college cost less? — The bill provides tax-free ways for employees and employers to save for qualified education expenses.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — The tax-advantaged savings accounts provide a mechanism for workers to fund future education.
- 5/7/2026
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Suzanne BonamiciDemocrat · Oregon